Posted tagged ‘plays poker’

Professor Varoufakis in his Le Monde piece expresses the view “that it is in Europe’s interest that Greece resists the ‘terms and conditions’ of its bailout package while staying within the eurozone.” But he flippantly disregards the danger that Greece by doing so might find itself out of Europe. It is true that his proposal does not “blackmail Europe” –although a recalcitrant and malicious person could say that his blackmail is like being a little bit pregnant. But he does not tell the whole truth: that he is playing high stakes poker with other peoples’ money. All the European leaders and high technocrats, bar none, have unanimously said that any repudiation by Greece of its “bailout commitments” would lead to its exodus from Europe. How credible, therefore, is Varoufakis’ implied assertion that they are bluffing and they would not cut off Greece from its European moorings, as the cost to Europe of such an action would be astronomical, when so strongly and pellucidly have put their credibility and reputation on the line about Greece’s exit? Are these two attributes so cheap in the minds of those who bear them and who hold such high positions in Europe?

Moreover, behold professor Varoufakis’ impeccable logic. He remarks that President Hollande’s “willingness notwithstanding” to be the “circuit-breaker…is hampered by the state of the French state’s finances.” How then Greece could be the “circuit-breaker” when its finances are immeasurably worse than France’s? Where Greece will find the funds, once Europe turns off the tap, to pay pensions, public servants, the running costs of hospitals and schools and other public institutions once it bails out of its commitments?